An ex-Barclays director was charged with giving insider tips to his plumber in exchange for bathroom work

The US Securities and Exchange Commission (SEC) arrested a former
Barclays director for alleged insider trading between the banker
and his plumber friend who "helped remodel his bathroom and put
cash in his gym bag in return for illicit tips about upcoming
mergers and acquisitions."

Steven McClatchey, 58, was then charged in a criminal complaint
in Manhattan on Tuesday.

McClatchey worked at Barclays from 2008 to December 2015,
according to Reuters, and the SEC
alleges he "had regular access to highly confidential
nonpublic information about impending transactions being pursued
for investment bank clients."

He passed these insider tips to his friend Gary Pusey on 10
occasions ahead of a merger, the SEC
claims. Pusey was then able to buy shares in 10 companies
ahead of deals and make an illegal profit of $76,000 (£52,488).

Reuters says Pusey secretly pleaded guilty on Friday and
agreed to cooperate with investigators. McClatchey has been
charged with conspiracy, wire fraud, and securities fraud.

McClatchey, a Long Island resident, first met Pusey on a boating
marina in early 2014 where the pair both parked their boats.

In return for the tips, Pusey gave McClatchey "free services
during his bathroom remodel and paid him thousands of dollars in
cash that he typically placed in McClatchey’s gym bag while at
the marina or handed to him directly in his garage," according to
the SEC.

The SEC says its enforcement unit noticed an odd trading pattern
for Pusey and Joseph Sansone, Co-Chief of the SEC Enforcement
Division’s Market Abuse Unit, says in a
statement: "We will continue enhancing our market
surveillance techniques to detect patterns of insider trading and
expose schemes, even when alleged perpetrators like McClatchey
and Pusey attempt to avoid detection by providing in-person tips
and cash payments."

Barclays did not immediately respond to request for comment. The
Financial Times quotes a spokesperson from Barclays as saying:

Barclays wholly supports the Southern District of New York, the
SEC and the FBI in their respective investigations, and has
co-operated fully with them since learning about this incident
involving a former employee. We have rigorous and extensive
conduct and compliance training at Barclays which we underpin
with a steadfast commitment to acting with integrity and respect.
Barclays will take appropriate action when employees do not hold
themselves to the conduct and control standards which are
embedded in our culture.